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Metrics that Matter
From the study “The Measurable Contribution of Marketing”
Debbie Qaqish,
Chief Revenue Officer &
Principal Partner of
The Pedowitz Group
Introduction
“Tracking, measurement, and metrics are all necessary and inevitable.”
- VP of Marketing, Quote from Interview on the Measurable Contribution of Marketing, June 2008
In late 2008, The Pedowitz Group conducted a study designed to answer the question, “What measurable contribution
does marketing make to the company?” The study involved conducting 18 one-on-one interviews with demand
generation leaders (all VP and Director level), as well as administering an online survey to nearly 200 participants of the
Online Marketing Summit (OMS) regional road show. We talked to people in multiple verticals with company sizes ranging
from $20 million to over $1 billion.
One of the key questions in the study was “What are you measuring in your lead generation efforts?” While lead
generation has been a key activity for many B2B marketers in the last few years, making it a measurable and predictable
science is where the most innovative marketing leaders have taken it to the next. This paper presents the major findings
on this topic, detailed in the following sections:




The Language of Metrics and Business
Metrics & Reporting
Time and Technology
Table of Metrics
The Language of Metrics and Business
“The biggest challenge is converting metrics into meaningful business information and results.”
In conversations with experienced marketers heading up lead generation efforts, both the language they used and the
language they had created across the company was distinctive from other marketers. First, they universally used the
language of business, not the language of traditional marketers. They described their contribution to the company (their
metrics) in terms of pipeline, opportunities and revenue. They did not talk about how many campaigns they had run or
how many hits they had to the website. The metrics they measured and talked about were metrics that mattered to a
CEO and communicated in terms the CEO understood and could evaluate.
Secondly, there was no hesitation when we asked them what they measured. They instantly knew their key metrics and
they also knew where they were against their targets. They didn’t have to look or pull out a spreadsheet or “go into their
system.” Their metrics were top of mind and a driving force for their entire group.
Finally, they had worked hard to create a common language for lead generation and the metrics across the company by
working closely with sales to define all elements of lead generation, and by working with senior management to align their
metrics to the company goals and quota. Whatever set of metrics these marketers used, they were agreed upon by sales
and senior management, and included a global set of definitions, deliverables and expectations from both marketing and
sales.
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Metrics and Reporting: What to Measure
“Never confuse activity with results.”
In the study, we wanted to find out specifically what lead generation marketers
were measuring, how they were reporting results, and to whom.
Let’s start with what they were measuring. The graph below was taken from the
results of the online OMS Survey and respondents were able to check all that
applied to their lead generation efforts. We offered a simple selection. Much
more detail on what marketers measure can be found in the Table of Metrics.

57% said they tracked and reported on # of leads generated by
marketing
 50% said they tracked and reported on # of inquiries
 47% tracked and reported on opportunities created from marketing
leads
 This is a great metric. More and more marketers are taking
responsibility for not just giving leads to sales, but ensuring a
higher quality lead is passed to sales that will result in a higher
lead-to-opportunity conversion rate.
 45% tracked and reported on amount of business closed from marketing
generated leads
 This is exciting! This is where the rubber meets the road for true
lead generation. This is what the CEO wants to see!
Online Survey:
What metrics do you track and report?
# of leads generated by marketing
57%
# of inquiries
50%
# of opportunities created from
marketing leads
47%
Amount of business closed from
marketing generated leads
None of the above
Other
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45%
19%
13%
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Metrics and Reporting: How Frequently
What to Report?
Next, we looked at how frequently marketing reported their metrics. The graph
below was taken from the results of the online OMS Survey. A full 68% of the
respondents have REGULAR reporting (quarterly, monthly, weekly, 24x7.) In
addition, as we interviewed the marketing leaders, they talked about not just
reporting numbers, but providing dashboards to the senior management team,
just like any other department of the company. We expect this trend will
continue.
Frequency of reporting is
meaningless if you don’t have a
baseline to see improvement in your
metrics. Create a baseline (even if it
is your best guess) for every key
metric you will be tracking and
reporting. Try to get general
agreement on these metrics.
Online Survey:
How often do you report these metrics?
28%
Monthly
22%
We do not report
17%
Weekly
13%
Available 24x7
11%
Not sure
Quarterly
The Pedowitz Group©,
As you begin fully utilize your
reporting, you will change what you
measure because you will now be
able to measure things you could not
before. However, in the beginning,
start with what you can tangibly and
discretely measure. Items such as: #
of emails sent, % open, % clickthroughs and % effective rate (clickthrough/open)
8%
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Metrics and Reporting: To Whom
Finally, for reporting and metrics, we looked at “to whom” these metrics were reported. The graph below demonstrates
the results of the OMS Survey and allowed multiple responses. Our first observation from this item is that 62% of the
respondents report to senior management. This is a huge shift in the last five years for marketing. In the past, many
marketers did not report anything out of their group except for how much money they spent! We expect this trend for
reporting business metrics will continue.
Online Survey:
To whom do your report these metrics?
62%
Senior management team
37%
Sales
15%
Board
No one outside of
marketing
Not sure
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13%
7%
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Only a Handful of Metrics Matter to Your Leadership Team
While there are many things you can measure, ask yourself - "What does my leadership team care about?" This will help
you define the metrics that matter. For example, your CEO could probably care less about how many emails got sent out
or the number of opens or even click-throughs. What he probably cares about are the number of highly qualified leads
sent to sales as measured by the % of these leads that converted into opportunities.
©2010 The Pedowitz Group | 888-459-8622 | [email protected]
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Time and Technology
“I abandoned early metrics because the business did not care about them. What I measured 2 years ago was a joke.”
When we spoke to marketers about what they measured, the conversation very
often included observations on how what they measured had changed over time.
As these marketers grew in their sophistication with people and process and as
they added key technology elements, their metrics and reporting detail, depth
and clarity, and how it related directly to the business, also grew. As a matter of
fact, in one section of the study, we asked them “What advice would you give to
a new lead generation marketer?” One piece of advice was, “Start with
measuring something and keep asking yourself, “Is this the best I can do?" For
many of these marketers, this was exactly how they got started on their journey
of reporting measurable contribution to the company. Adopting a culture of
measurement, and always pushing to find better ways to track, measure and
contribute, was a shared theme among all of our interviewees.
Another common theme for the interviewees, real leaders in lead generation,
was the use of integrated technologies. They usually had knit together their
website with a marketing automation system and a CRM system. When this set
of technologies was completely integrated, these were the marketers who could
report - in the most detail - on their contribution all the way to revenue. When
these two systems were in place, but not integrated, these marketers had good
reporting, but still had to use too many manual processes. And finally, when the
marketing group had no marketing automation system or CRM system in place,
they had the most difficulty with tracking and reporting.
How to use technology to scale Demand Generation
There is no questioning that today’s marketing professional is much more tech savvy then previous
generations. They can text, blog, engage in social networks, and use the internet in a variety of ways. What
they haven’t learned how to do is leverage these technologies to build sustainable revenue streams for their
companies. Marketers tend to overuse email at the expense of other channels and miss opportunities to
engage with their prospects and customers in a meaningful fashion. Instead of using technology to scale, many
marketers spend their days in hand-to-hand combat, performing a variety of key tasks manually. This is very
inefficient and slows top-of-the-funnel growth. The first thing marketers need to do is build processes that can
source leads from a variety of channels. These processes should include target profile, messaging, scoring,
routing, follow-up, management, and disposition. Once these processes are in place, marketers can then select
and use technology to drive demand. The most successful marketers leverage an ecosystem to drive a
continuous flow of leads. There is no silver bullet. By building a variety of acquisition channels, marketers can
more predictably grow their business.
©2010 The Pedowitz Group | 888-459-8622 | [email protected]
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Time and Technology: Systems
Here are the results of which type of systems participants used including CRM,
marketing automation, and integrations between the two. We believe the use of
these technologies will grow dramatically in the next two years.
 45% reported having a CRM system
 This was a surprisingly low percentage for a B2B organization
 42% reported not having an integration between their CRM and market-
ing automation system
Only 20% reporting having an integration between their marketing automation system and their CRM
 This indicates that it is still early days in the adoption and use of key
technologies to drive business results.

Online Survey:
Systems
45%
We have a CRM system
Our marketing automation and CRM
systems are not integrated
Our marketing automation and CRM
systems are integrated
We have a marketing automation
system
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42%
20%
17%
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Conclusion
As our opening quote points out, “Tracking, measurement, and metrics are all
necessary and inevitable for marketing.” Embracing this as a change and a new
competency is required for success today as a B2B marketer. It requires rethinking
what you can contribute to the business, understanding the skills required and the
technologies required, and then re-knitting your efforts so that you are making a
measurable contribution to your company.
©2010 The Pedowitz Group | 888-459-8622 | [email protected]
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Table of Metrics
“Everything we measure and track is about how many leads we need to get the revenue that we need.”
This Table of Metrics was compiled based on the interviews completed in this study, as well as conversations with other marketers.
It will help you begin to determine the various metrics you might report to define your contribution to the company. If you’re already in early stages of reporting, it can be a guideline to improve your own metrics.
Inquiries
Leads
Opportunities & Closed
Business
# of Opportunities Created
Conversion Ratios
ROI & Costs
# of Inquiries
# of Leads
% of Lead to Marketing
Qualified Lead
# of Marketing Qualified
Leads
# of Sales Qualified
Leads
# of Deep Pipeline Opportunities
% of Leads Accepted by
Sales
% of Leads to Sales
Qualified Leads
Overall Marketing
Contribution to Revenue
from all Channels
Return on Marketing
# of Suspects
# Targeted in Campaigns
# of Raw Leads
Dollar Value of Opportunities
Contributed by Marketing
# of Connections
# of Qualified leads
# of Deals Closed from
Marketing Contribution
Dollar Value of Deals Closed
from Marketing Contribution
% of Total Revenue from Marketing Contribution
# of Opportunities from Brand
New Prospects
# of Responses
# of Leads by Source
# of Leads Qualified by
Inside Sales
# of Leads Required for
Sales to Meet Monthly
Quota
# of Leads Passed to
Sales
# of Leads from Brand
New Prospects
# of Leads from Current
Customers
# of Touches to Create a
Lead, a Marketing Qualified Lead
% of Pipeline Contributed by
Marketing
% of Marketing Qualified
Leads to Sales Qualified
Leads
% of Leads to
Opportunity
% of Marketing Qualified
Leads to Opportunity
% of Sales Qualified
Leads to Opportunity
% of Leads to Close
ROI by Channel – Which
Channel Creates the Most
Revenue
Cost Per Lead
Cost Per Marketing
Qualified Lead
Cost per Sales Qualified
Lead
Cost per Opportunity
Cost per Campaign
Cost per Channel
Dollar Value of Opportunities
from Brand New Prospects
# of Opportunities from Current
Customers
Dollar Value of Opportunities
from Current Customers
Debbie Qaqish has enjoyed 30 years of business success as a sales and marketing executive in software and technology
companies. She has been at the forefront of the Marketing Automation phenomenon, first as a beneficiary, and now as advocate
and expert. Debbie is recognized nationally as a thought leader and innovator in the Marketing Automation arena.
Debbie is the Chief Revenue Officer and Principal Partner at The Pedowitz Group, a premier demand generation agency. The
Pedowitz Group delivers software and services specifically designed to create, manage, automate, and optimize Marketing and Sales
efforts utilizing Marketing Automation and Customer Relationship Management technologies.
©2010 The Pedowitz Group | 888-459-8622 | [email protected]
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